2. MODES OF PAYMENT
• The mode of payment refers to the various methods of payment
by which a guest can settle or pay his/her bills in the hotel.
• Whenever guest checks in a hotel, he/she has to make clear about
the modes of payment at the time of registration so that, it will
greatly reduce the problem while settling the bills.
• When the guest checks out of the hotel usually they pay the bills
by cash or credit card, but in some cases, the charges are billed to
the company account, by traveler cheque and through travel
agent/airline voucher.
3. DIFFERENT MODES OF PAYMENT
• Cash
• Cheque
• Credit card
• Debit card
• Bill to company
• Travelers Cheque
• Travel agent Voucher
• Charge voucher
4. CASH
• It is the most common and widely accepted payment mode.
• Payments are made in local currency or in Foreign currency.
• While doing the payment the bill is presented by
front office cashier to the guest and payment is done on
hand through cash.
• The cashier should know the exchange rate well and should
distinguish currency well.
5. CHEQUE
• Every hotel has its bank account to facilitate buissness.
• Hotel accepts both company cheque and personal cheque upto a
certain limit accompanied by bank guarantee card.
• It is another form of cash
• Payment through the cheque is safer and convenient.
• So most of the customers prefer to the payment through the
cheque
6. CREDIT CARD
• It is issued by bank to customers and can be used for various
purposes.
• It is a plastic card with chip.
• Different major credit cards are accepted by hotel and is very
popular mode of payment.
• It should be known that the credit card holder and the owner are
same person and card should have validity.
7. DEBIT CARD
• It is a card that allows customers to access their funds
immediately, electronically. It enables the holder to withdraw
money or to have the cost of purchases charged directly to the
bank account without paying by cash or writing a cheque.
• In case of insufficient funds, the bank does not authorize the
transaction and the guest is requested for an alternate mode of
payment.
8. TRAVELERS CHEQUE
• A Traveler’s cheque is an internationally accepted cheque for a
sum in a specific currency that can be exchanged for local
currency.
• It is issued by a financial institution and can be protected against
loss or theft. It is useful especially in the case of overseas travel
where all credit and debit cards are not accepted.
9. BILL TO COMPANY
• The executives carry a letter from their company, which is called
a bill to company letter, as a proof of their identity.
• The reservations are made by the company on behalf of the
travelling executives.
• Some companies, whose executives, travel at the expense of the
company, make a deal with hotels, whereby they determine the
rates for different types of rooms and meal plans to be offered to
their executives.
10. TRAVEL AGENT VOUCHER
• The guest should handover the original voucher at the time of
registration.
• This voucher will be kept along with the guest folio or bill.
• The billing instructions are mentioned in the voucher and
accordingly the data is entered in the guest bill.
• The hotel sends the original vouchers along with the guest bill and
the departmental voucher for the payment to the travel agent
after the guest departure.
• The travel agent settles the bill after subtracting his commission.
On receiving the payment the hotel issues a receipt to travel
agent.
11. CHARGE VOUCHER
• The voucher is an internal document describing and authorizing
the payment of a liability to a supplier.
• The identification number of the supplier.
• The amount to be paid.
• The date on which payment should be made.
• The accounts to be charged to record the liability.